Our Property Management Division has been very busy this past year listing and renting homes that just won't sell. Due to the high monthly payments on these unsold homes, rental rates have also gone up. We are pricing them higher and the renters are complaining more that they could buy a house for that amount. The sad fact is that they can't buy a house in today's market because they just lost one to foreclosure and it will be at least three years before they can buy another. Their decreased credit scores put them in a risk category that demands more Security Deposit and higher rents.

With interest rates under 4%, you would think that we would be writing contracts every day and that the homes on the market would be coming down in price. However, in our Raleigh, NC market, that is not the case. Our prices are steady to improving. Our rental rates are climbing due to the numbers of renters entering the market due to credit issues and the more stringent qualifying guidelines placed by the banking industry on the hopeful buyers.

We are finding that the buyers are looking for lower home prices because the media has convinced them that we have not reached the bottom of this trend, yet. The real estate community has not put forth any information that would disuede them from this opinion. The banking community keeps threatening to release millions of foreclosed homes in the next few years that would continue to bring prices down in many communities. Is it any wonder that the buyers are slow to write that offer today?

I will keep listing those home that don't sell for our Rental Market and provide the best service I can to the tenants and the Landlords. But, be ready for increased rent rates for the next several years. Plan on larger Security Deposits and more rent up front, especially, if htere is a Foreclosure or Bankruptcy on the credit report.

What a great time to invest in housing for the rental market. Call me. Just remember that when you are making a mortgage payment of $2000 per month, what is $100 less per month on the rent, if you make the payments for two months without a tenant.